How China's Control Over DRC's Copper and Cobalt Mining Shapes Global Supply Chains

China controls up to 70% of the Democratic Republic of Congo's (DRC) copper and cobalt mining operations, a fact that significantly influences the global supply of these critical minerals. These resources are essential for electric vehicles, electronics, and renewable energy technologies. The DRC, rich in copper and cobalt, exports raw materials primarily to China, where midstream refining takes place. Recently, Kinshasa has tightened its grip on the sector by enforcing sovereign control and issuing annual export quotas to encourage domestic processing. This blog explores how China's dominance in the DRC's mining sector shapes global supply chains, the evolving regulatory landscape, and the implications for the battery metals market.

Copper mining operations in the DRC, showing heavy machinery and excavation

Chinese Investments Dominate Extraction and Operations

Chinese companies operate roughly 72% of the DRC's copper and cobalt mining assets, including major sites like the Tenke Fungurume Mine (TFM) and Kamoa-Kakula. These mines are located in the southern copper belt, a region rich in mineral deposits. Chinese firms account for about 76% of the DRC's copper output and 53% of its cobalt production. This dominance results from long-term resource-backed investments, such as the $7 billion Sicomines project, which ties mining rights to infrastructure development under China's Belt and Road Initiative.

The scale of Chinese involvement means that the DRC's mineral wealth is closely linked to China's industrial and technological ambitions. Chinese companies bring capital, technology, and expertise to mining operations, but the raw materials are largely exported to China for processing rather than being refined locally.

Refining and Midstream Processing in China

Although the DRC supplies approximately 70% of the world's cobalt, most midstream refining happens in China. This refining step is critical because it transforms raw ores into battery-grade materials used in electric vehicles and consumer electronics. China's control over refining gives it significant influence over the global battery metals market.

By importing raw copper and cobalt, China maintains a strong position in the supply chain, controlling both the upstream extraction and the midstream processing stages. This vertical integration allows Chinese companies to manage costs, quality, and supply volumes more effectively than competitors.

Cobalt refining plant in China showing industrial equipment and processing lines

Trade Volumes and Bilateral Agreements

Trade between the DRC and China is anchored by strategic agreements and infrastructure projects. The Belt and Road Initiative supports resource-backed deals that link mining operations to broader economic development goals. In 2024, Chinese imports of refined copper from the DRC surged by 71%, reaching 1.48 million tonnes. This sharp increase reflects growing demand for battery metals amid the global shift to clean energy and electric vehicles.

These trade volumes highlight the interdependence between the two countries. The DRC relies on Chinese investment and export markets, while China depends on the DRC for essential raw materials to fuel its manufacturing and technology sectors.

DRC's Sovereign Control and Export Quotas

In recent years, the DRC government has moved from outright bans on raw mineral exports to a system of strict export quotas. These quotas require mining companies, including Chinese firms like CMOC, to process a portion of their output domestically. For example, the cobalt export quota for 2024 is set at approximately 96,600 tonnes.

This policy aims to increase local value addition, create jobs, and capture more economic benefits within the country. It also seeks to balance the global supply chain by ensuring that some refining and processing occur in the DRC rather than all being outsourced to China.

Expanding Beyond Copper and Cobalt: Lithium Development

While copper and cobalt remain the dominant minerals, Chinese companies are also investing in lithium deposits in the DRC. Zijin Mining and CATL are developing large-scale lithium projects, such as the Manono site, to supply China's growing electric vehicle battery industry.

Lithium is a critical component for next-generation batteries, and securing access to these deposits strengthens China's position in the global EV supply chain. This diversification reflects a broader strategy to control multiple key minerals needed for clean energy technologies.

Lithium mining site in the DRC showing excavation equipment and mineral deposits

Regulatory Scrutiny and Traceability Efforts

The mining sector in the DRC faces intense scrutiny from global organizations and human rights groups. These bodies push for due diligence to prevent human rights abuses, such as child labor and unsafe working conditions, which have historically plagued the industry.

Traceability initiatives focus on tracking minerals as they move through the supply chain, especially along routes like the Nacala Corridor. Improved transparency helps companies and governments ensure that minerals are sourced responsibly and meet international standards.

What This Means for Global Supply Chains

China's control over the DRC's copper and cobalt mining shapes global supply chains in several ways:

• Supply Security: China's dominance ensures a steady flow of critical minerals for its industries but creates dependencies for other countries.

• Market Influence: Control over refining and processing allows China to influence prices and availability of battery metals worldwide.

• Local Economic Impact: The DRC's export quotas and push for domestic processing aim to increase local benefits but face challenges in implementation.

• Ethical Sourcing: Global pressure for responsible mining practices drives improvements in traceability and labor standards.